IOB Asset Quality Improves with GNPA at 2.89% in Q1 2024
IOB's asset quality improved in Q1 FY24, with the GNPA ratio at 2.89% (down from 7.13% YoY), NNPA ratio at 0.51% (down from 1.44% YoY), and PCR at 96.96%, with total recoveries of ₹582.27 crore.
by Damodharan N
Updated Jul 23, 2024
Table of Content
Indian Overseas Bank (IOB) has reported significant improvements in its asset quality for the first quarter of FY24. As of June 30, 2024, the bank's Gross Non-Performing Assets (GNPA) ratio stood at 2.89%, down from 7.13% a year earlier and 3.10% in March 2024.
The Net Non-Performing Assets (NNPA) ratio also showed improvement, declining to 0.51% from 1.44% in June 2023 and 0.57% in March 2024. The Provision Coverage Ratio (PCR) increased to 96.96% as of June 2024, up from 94.03% in June 2023 and slightly higher than 96.85% in March 2024.
For Q1 FY24, IOB's total recovery reached ₹582.27 crore, with ₹311.37 crore recovered from technically written-off accounts. The bank's slippage control improved, with a reduced slippage of ₹277 crore and a slippage ratio of 0.13%, an improvement of 18 basis points.
IOB Q1 2024 Financial Results
Indian Overseas Bank (IOB) has announced impressive financial results for the first quarter of FY24, demonstrating robust growth and improved operational efficiency.
The bank's net profit increased significantly by 26.60%, reaching ₹633 crores compared to ₹500 crores in the same quarter last year. IOB's operating profit also saw a substantial rise of 24.61%, climbing to ₹1,676 crores from ₹1,345 crores a year ago.
This reflects a solid performance and effective strategic initiatives. Total income for the quarter grew by 21.54% to ₹7,568 crores. Interest income rose by 20.48% to ₹6,535 crores, while non-interest income increased by 28.64% to ₹1,033 crores.
The bank's CASA (Current Account Savings Account) balance improved by 7.93% to ₹1,25,947 crores. The CASA ratio now stands at 42.17%.Total business for IOB grew by 16.04%, totaling ₹5,28,773 crores.
This growth includes:
- Deposits: A 12.96% increase to ₹2,98,681 crores.
- Advances: A notable 20.30% rise to ₹2,30,092 crores.
The Credit to Deposit (CD) Ratio improved to 77.04%, while the Return on Assets (ROA) increased to 0.70%, up from 0.62% in the previous year. Return on Equity (ROE) also strengthened to 14.10% from 13.44%.The bank's Basel III Capital Adequacy Ratio (CRAR) rose to 17.82%, with Common Equity Tier 1 (CET1) at 14.99% and Tier-II at 2.83%.
Overall, IOB’s Q1 FY24 results highlight its strong financial health and strategic progress, setting a positive tone for the remainder of the year.
Source: Here
IOB
Indian Overseas Bank (IOB), founded in 1937 and nationalized in 1969, is a major player in the banking sector with over 3,200 branches and 3,500 ATMs in India, plus a presence in Singapore, Hong Kong, Thailand, and Sri Lanka.
Serving more than 41 million customers, IOB is known for its innovative digital solutions, including a top-rated Core Banking System, a Private Cloud, and an Integrated Payment Hub.
The bank offers unique services such as Tab Banking, customizable account names, and instant access to safe deposit lockers. These advancements highlight IOB's dedication to enhancing customer experience and convenience.
IOB Asset Quality Improves in Q1 2024 - FAQs
1. What is IOB's net profit for Q1 FY24?
The net profit for Indian Overseas Bank (IOB) in Q1 FY24 is ₹633 crores.
2. How much did IOB's net profit increase in Q1 FY24?
IOB's net profit increased by 26.60% compared to the same quarter last year.
3. What was IOB's operating profit for Q1 FY24?
IOB reported an operating profit of ₹1,676 crores for Q1 FY24.
4. How much did IOB's operating profit grow by in Q1 FY24?
The operating profit grew by 24.61% from the previous year.
5. What is the total business of IOB as of Q1 FY24?
The total business of IOB is ₹5,28,773 crores as of Q1 FY24.
6. How much did IOB's total business increase in Q1 FY24?
The total business increased by 16.04% from the previous year.
7. What are IOB's total deposits as of Q1 FY24?
Total deposits at IOB are ₹2,98,681 crores for Q1 FY24.
8. How much did IOB's total deposits grow in Q1 FY24?
Deposits grew by 12.96% compared to the previous year.
9. What is the gross advance of IOB for Q1 FY24?
The gross advance for IOB is ₹2,30,092 crores as of Q1 FY24.
10. How much did IOB's gross advances increase in Q1 FY24?
Gross advances increased by 20.30% from the previous year.
11. What is IOB's CASA amount as of Q1 FY24?
IOB's CASA amount is ₹1,25,947 crores for Q1 FY24.
12. What is the CASA ratio for IOB in Q1 FY24?
The CASA ratio stands at 42.17% for Q1 FY24.
13. What is the Gross NPA ratio of IOB as of June 30, 2024?
The Gross NPA ratio is 2.89% as of June 30, 2024.
14. What was IOB's Gross NPA ratio a year ago?
A year ago, the Gross NPA ratio was 7.13%.
15. What is the Net NPA ratio of IOB as of June 30, 2024?
The Net NPA ratio is 0.51% as of June 30, 2024.
16. What was IOB's Net NPA ratio in June 2023?
The Net NPA ratio was 1.44% in June 2023.
17. What is the Provision Coverage Ratio (PCR) for IOB as of June 30, 2024?
The Provision Coverage Ratio is 96.96% as of June 30, 2024.
18. What was IOB's PCR a year ago?
A year ago, the Provision Coverage Ratio was 94.03%.
19. What is IOB's total recovery for Q1 FY25?
The total recovery for IOB in Q1 FY25 is ₹582.27 crores.
20. How much did IOB recover from technically written-off accounts in Q1 FY25?
IOB recovered ₹311.37 crores from technically written-off accounts.
21. What is the slippage amount for IOB in Q1 FY24?
The slippage amount for IOB is ₹277 crores in Q1 FY24.
22. What is the slippage ratio for IOB in Q1 FY24?
The slippage ratio is 0.13% for Q1 FY24.
23. What is the Net Interest Margin (NIM) for IOB in Q1 FY24?
The Net Interest Margin stands at 3.06% for Q1 FY24.
24. What is IOB's Capital Adequacy Ratio (CRAR) as of June 30, 2024?
The Capital Adequacy Ratio is 17.82% as of June 30, 2024.
25. What is IOB's Tier 1 Capital ratio as of June 30, 2024?
The Tier 1 Capital ratio is 14.99% as of June 30, 2024.
26. What is IOB's Return on Assets (ROA) for Q1 FY25?
The Return on Assets is 0.70% for Q1 FY25.
27. What was IOB's ROA in Q1 FY24?
The ROA was 0.62% in Q1 FY24.
28. What is IOB's Return on Equity (ROE) for Q1 FY25?
The Return on Equity is 14.10% for Q1 FY25.
29. What was IOB's ROE a year ago?
The ROE was 13.44% a year ago.
30. How much did IOB's gross investments increase in Q1 FY24?
Gross investments increased by ₹7,701 crores, reaching ₹1,03,029 crores.